Global Markets Weekly Update - May 22, 2026

U.S. Market Overview

Major U.S. stock indexes closed the week higher, with the Dow Jones Industrial Average reaching an all-time high. The S&P 500 Index marked its eighth consecutive week of gains, the longest winning streak since 2023. Small-cap and value stocks outperformed their large-cap and growth counterparts.

Investor sentiment improved mid-week, driven by strong earnings from NVIDIA and optimism surrounding AI stocks, despite ongoing geopolitical tensions in the Middle East.

Economic Indicators

The S&P Global May Flash PMI data indicated modest growth, with manufacturing activity strengthening while services softened. Inflation concerns were highlighted as input costs surged, and consumer sentiment hit a record low of 44.8, primarily due to rising cost-of-living pressures.

Housing market data showed subdued activity, with rising mortgage rates dampening buyer demand.

Interest Rates and Treasury Yields

U.S. Treasuries saw positive returns, with yields fluctuating throughout the week. The Fed's minutes indicated ongoing concerns about inflation, suggesting potential future policy tightening.

European Market Insights

The pan-European STOXX Europe 600 Index rose by 3.00%, driven by hopes of de-escalation in the Middle East. However, the European Commission cut its 2026 growth forecasts due to geopolitical and energy concerns.

Japan's Economic Performance

Japan's equity markets rebounded, with the Nikkei 225 Index rising 3.14%. However, the yen weakened following softer inflation data, and JGB yields rose amid fiscal concerns.

China's Market Challenges

Chinese equities retreated as April activity data disappointed, raising concerns about growth. The People's Bank of China maintained its lending rates, signaling a cautious approach to monetary policy.

Other Key Markets

Indonesia raised its policy rate unexpectedly to stabilize the rupiah, while Türkiye faced significant market pressure following political turmoil.

Market Performance Summary

Index	Friday's Close	Week's Change	% Change YTD
DJIA	50,579.70	1,053.53	5.24%
S&P 500	7,473.47	64.97	9.17%
Nasdaq Composite	26,343.97	118.83	13.35%
S&P MidCap 400	3,673.41	63.61	11.14%
Russell 2000	2,869.21	75.92	15.61%

This summary is for informational purposes only and does not constitute investment advice.